The International Finance Corporation (IFC), a member of the World Bank Group, has announced a R1 billion (approximately $58 million) investment in listed apartment developer Balwin Properties.

The funding will support the construction of over 16,000 affordable homes for low- to middle-income buyers in the greater Johannesburg area, helping to expand access to affordable housing in South Africa.

IFC’s local currency R1 billion loan for Balwin Properties will facilitate the construction of Mooikloof City, a housing development to be located east of Pretoria and about 40km from Johannesburg consisting of 16,468 housing units.

The houses will be built to high environmental standards, and include energy-efficient appliances, water-saving equipment, and insulation to minimize temperature fluctuations, enhancing sustainability and supporting South African’s transition to a lower-carbon economy.

Each house will be certified by IFC’s Excellence in Design for Greater Efficiencies (EDGE) tool.

IFC’s investment is expected to promote job creation and economic growth through its impact on the local community and surrounding areas, deepening local supply chains, and improving business and residential infrastructure.

“Balwin is the world’s largest developer of EDGE Advanced certified apartments, enabling savings of more than 40% in energy and 20% in water and embodied energy in materials compared to conventional building methods. Homeowners save on monthly utility charges through lower consumption as well as through potential lower bond repayments thanks to our Green Bonds with most major banks,” said Steve Brookes, CEO of Balwin Properties.

“As urbanisation accelerates, we recognise the critical role the private sector must play in addressing the housing shortfall and we are proud to be part of the solution. Beyond housing, this investment will stimulate job creation, economic growth and local supply chains, strengthening the surrounding community and contributing to South Africa’s broader development goals.

An estimated 66% of South Africa’s population resides in urban areas, a figure projected to rise to 71% by 2030. To effectively address the country’s large housing shortfall, it is essential for the private sector to play a meaningful role in complementing the government’s construction efforts. the IFC said.